How do you stand out from the sea of competition? (Photo by flickkerphotos)
Let’s face it; the business climate has changed forever. With the recession, job losses, and conservative spending at companies of all sizes, professional services firms are facing new challenges as they try to grow.
The sales cycle is getting longer. We are hearing many more buyers saying things like, “We really want to move ahead with this project; we just need another month of positive cash flow.” And, “We just need this one client to extend their contract us for us to extend our contract with you.”
The already slow, complex sales cycle is getting longer. If you do not have a process for staying in touch with and moving prospects along the cycle, more and more of them will fall through the cracks.
Competition is increasing. With very low barriers to entry (all a service provider needs is a computer and a LinkedIn account to start their business and begin outreach) paired with an influx of service providers laid off from consulting, law, and accounting firms, more professionals than ever are starting their own practices. And some of these professionals are becoming well-known experts in their respective fields.
In addition, they have many tools at their disposal to help them become thought leaders, such as blogs, Twitter, Facebook, and LinkedIn. Within a month of hanging a shingle, an individual can build up a strong following through these media and carve out a niche for himself. That means, however, that there is more competition out there, and they’re going after your clients. If you aren’t building strong relationships with your clients and prospects, you can be sure your competition is.
Services are becoming commodities. The increased competition and buying power of the clients leads many buyers to view professional services as commodities. With accountants, lawyers, and consultants sprouting up on every street corner, buyers are willing to shop around based on price. If one won’t do it for the price the buyer wants, he certainly can find another who will.
As a professional services provider you need to find a way to differentiate yourself and demonstrate your value. You need to prove to buyers through your thought leadership activities, conversations, and interactions that you are the expert they want and need. If you aren’t able to show how you are different from Joe down the street, then you likely are a commodity.
How are you dealing with these challenges? Share with us in the comments below.
